One fifth of singles use credit cards and loans to fund lifestyle
March 22, 2011
Credit cards can come in useful for many things, from paying for everyday goods and then repaying the balance in order to earn rewards to providing a financial lifeline in the event of emergencies. However, it seems that there are many people that are determined to get themselves into debt on their credit cards simply to fund a certain lifestyle according to reports, with research showing that one fifth of single people regularly use their credit cards as well as loans to fund a lavish lifestyle.
The survey was carried out by Bright Grey and showed that one in five people living alone were using credit cards and loans to fund their lifestyles. Another one in six people living alone said that they were using their overdraft facility in order to keep up a particular lifestyle. In total around 17 percent of single people living alone said that they regularly overspent each month. Out of these 25 percent said that they overspent because they were paying out money to maintain an enjoyable lifestyle.
The average monthly take home pay for someone that lived alone was £1267 but singles have been saying that they need around 25 percent more than this to maintain their lifestyles, which would equate to an average £1594. The survey results showed that 35 percent of those polled felt that they had to spend money whilst 24 percent said that they did it because they enjoyed it.
Tags: average salary, Credit history, emergencies, useful, particular lifestyle, debtA spokesperson for Bright Grey said: ‘There is a real concern that, for many people, high mortgage and rental prices can mean that spending choices are limited. Yet more worryingly, it seems that the average salary is far too short for some, who just can’t help but overspend in order to maintain their existing lifestyle.’
Credit card rates soar despite base rate
February 8, 2011
For nearly two years the base interest rate in the UK has stood at just 0.5 percent, which is the lowest level it has ever been at in the history of the Bank of England, which spans over three centuries. However, throughout the period over which the base rate was falling credit card interest rates continued to increase.
At present the base rate still stands at 0.5 percent. However, despite this credit card interest rates have continued to soar, with the average credit card interest rate now coming in at a whopping 18.9 percent. This is thirty five times higher than the Bank of England base rate and is the highest it has been in thirteen years. Some officials believe that this stems from providers being cautious due to the increased risk of bad debt because of job losses and the state of the economy.
Credit card providers that are offering lower rate deals are becoming increasingly cautious over who they offer these deals to, which means that the majority of consumers have reduced choice when it comes to finding a credit card. This means that many end up having to go for the higher rate cards, and with interest rates going up and up this can equate to a huge amount of debt and interest.
Tags: Rates (tax), level, debt, bank of england, customer base, credit cardOne official said: “During the financial crisis many credit card companies assessed their existing customer base and many customers have seen large increases in the rate they are charged. Customers who would previously have switched to another provider are now finding it’s not so easy to do so. Competitive deals for balance transfers and introductory purchases remain on offer but card providers are selective over exactly who they select for these deals.”
Brits more prepared when it comes to credit cards
November 12, 2010
It has been revealed in a recent report that there has been an increase in the number of people that have been searching for a 0 percent balance transfer deal. Credit reference agency Experian claims that in October the number of people searching on 0 percent balance transfer credit cards increased by more than 35 percent compared to the same month last year. Officials claims that this means that consumers are better prepared this year, and are not waiting around for the bills from Christmas spending to start rolling in when January comes around.
Experts have said that the fact that more people are searching for interest free balance transfer credit cards can be viewed in two ways, one good and one bad. On the upside it means that consumers are no longer willing to put up with high interest credit card debt, and are willing to prepare themselves for the expense of the Christmas period and do their best to avoid having to pay unnecessary interest on their borrowing.
However, on the other hand officials say that it could mean that consumers are simply planning to spend, spend, spend over the festive season regardless of whether they can afford it, and are hoping that by putting all of their credit card debt onto an interest free balance transfer card they can reduce the stress of borrowing money that they cannot really afford.
Those that are searching for a 0 percent balance transfer credit card will find a number of deals on the market, and will be able to find the most suitable card by comparing the various deals available. Looking for a longer interest free period will enable consumers to spread the transferred balance out more and reduce their payments.
Tags: festive season, interest free balance transfer credit cards, rolling, balance transfer, debt, high interestAre You Using Your Credit Card For Christmas This Year?
November 30, 2009
Recent research, by moneysupermarket.com, has shown that 66 % of Brits have not saved enough money for Christmas this year. 18 % have saved enough, 34 % are on target to have saved enough and 17 % said they are turning to a credit card, resulting in many getting themselves into debt in order of being able to provide a perfect Christmas for the family. Read more
Tags: financially, 0% interest, debt, zero per cent, credit cardConsumers Could Benefit From Fee Free Card Transfers
October 13, 2009
At this time of the year, when many people are still battling to repay the credit card debts that they built up over the Christmas and New Year periods, many cardholders decide to look for suitable alternatives to try and cut the amount of interest that they are paying as well as to try and clear their credit card debt quickly. For those that have outstanding balances on high interest credit card, and who are unable to clear the balance in one go, interest payments can end up being very high. Read more
Tags: interest payments, debt, credit card, cardholders, interest, 0 percent, balance transfer, high rateCredit Card Providers To Face Further Clampdown
October 6, 2009
Credit card providers in the UK are set to face a further clampdown as the UK government brings in measures to cut the temptation of further credit card debt for consumers. The government is looking to bring in a number of measures that could decrease the chances of consumers getting themselves even further into debt at a time when the credit card and other debt levels in the UK are already causing concern. Read more
Tags: cardholder, borrowing, cheques, consumer affairs, credit card, debt, limitLloyds TSB attacked over credit card gambling
August 25, 2009
High Street bank, Lloyds TSB, has been attacked by debt charities and politicians over an issue relating to gambling on credit cards. The bank has been accused of encouraging its customers to gamble on their credit cards, thus encouraging both higher levels of debt and gambling addiction amongst its customers. The bank informed its customers by letter that they could use 50 percent of their credit as cash and use it on transactions ‘such as gambling’. Read more
Tags: Credit Cards, high street bank, Philip Hammond, Lloyds TSB, debt